Taiwan industry decline taught species diversity
Bangkok Post 19 Nov 12;
The decline of Taiwan's shrimp industry in the 1980s not only opened up lucrative business opportunities but also taught Thailand a great lesson about operating aquaculture with the utmost concern for the environment.
A "gold rush" attitude drove Taiwanese investors to expand black tiger prawn farms until many mangrove forests had been destroyed.
Environmental problems caused by extensive shrimp aquaculture had developed before the industry was seriously affected by plummeting black tiger prawn production, which fell to only 20,000 tonnes in 1988 from 100,000 tonnes a year earlier.
The slump forced many Taiwanese producers to open new farms in Southeast Asia, with Thailand starting to prosper in the late 1980s when the Charoen Pokphand (CP) Group was a key player.
Chingchai Lohawatanakul, vice-chairman of Charoen Pokphand Foods Plc, the conglomerate's flagship, said the CP Group began a study on the aquaculture of black tiger prawns in 1988 with the help of specialists and academics.
"A year later, the business took off with satisfactory production in the first year," he told participants at the Global Aquaculture Outlook 2012 (Goal 2012) conference held in Bangkok recently.
"Production in the first year was impressive, as was the profit. Our farm was big, and there was a shortage of shrimp supply in the world market at that time."
As supply from Taiwan declined, Thailand was not slow to seize the opportunity.
Through cooperation between public and private sectors, Thailand has gradually emerged as the world's top shrimp producer and exporter.
It produced 510,000 tonnes of prawns last year, with two-thirds exported to generate revenue of more than 110 billion baht.
Thailand's shrimp sector focuses now more on farming than on wild catches.
From 1987, production of farm-raised black tiger prawn in Thailand rose each year to surpass 100,000 tonnes in 1990 as demand grew from abroad.
The bright outlook continued as the country's 8th National Plan (1997-2001) set the target for black tiger prawn production at 350,000 tonnes by 2001.
It was set after aqua produce earned substantial export revenue of 43 billion baht and was listed among the top 10 export items in 1996.
Thailand remains the world's largest shrimp exporter, selling 427,580 tonnes valued at 100 billion baht in 2010 and 392,600 tonnes worth 110 billion baht last year.
In the first eight months of this year, Thailand exported 222,247 tonnes of shrimp products worth 61 billion baht.
Mr Chingchai, 72, who received a lifetime achievement award from the Global Aquaculture Alliance at the conference, helped drive the CP Group to become the world's leading producer of aquatic animals.
After the company's great success with black tiger prawn production in the first five years, the Thai sector suffered severely from an outbreak of white spot disease that plunged it into crisis.
Mr Chingchai decided intensive research and development (R&D) could be the key to combating the critical situation.
CP spent 2% of its business value on R&D of shrimp species for sustainability. That policy has continued until this year, when it spent almost US$40 million so that it would have a variety of shrimp species.
Mr Chingchai says Penaeus vannamei (Pacific white shrimp) is a good example of the company's success in developing shrimp species and its aquaculture.
Production of white shrimp had surged to 600,000 tonnes by 2010, less than 10 years since the species was introduced to the country.
Better farm management and proper care of wastewater will help the industry to expand sustainably, he said.
"The building of sustainability in aquaculture is meant to develop not only species diversity but also the systems of feeding, incubation, farming, processing and marketing," said Mr Chingchai.
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